Introduction to this report:

As a leading warehousing and logistics leader, the company has accumulated a large amount of core data based on bulk trading platforms, and the potential for data monetization is huge.

At the same time, digital renminbi payment and settlement is carried out with the clearing house. With the support of the state-owned assets background, future revenue growth will exceed expectations.

Key points of investment:

First coverage, giving an increase in holdings rating. As a digital yuan leader in the commodity sector, the company's revenue for 2023-2025 is estimated to be 16.46/20.86/2,557 billion yuan, and EPS is 0.21/0.25/0.35 yuan respectively. According to 2024, 30 times PE, the target price is 7.42 yuan.

A unique understanding: taking advantage of data elements and digital yuan, traditional warehousing and logistics leaders have opened up a new growth curve. The market believes that the company, as an established warehousing and logistics company, is affected by the macro environment, and there is limited room for growth; we believe that as a leading warehousing intelligent logistics platform in the bulk sector, the accumulated value data has huge potential for monetization. At the same time, the company pioneered the use of digital yuan to deeply empower commodity payment and settlement services, which is an industry benchmark. With the rapid deployment of data factor policies, the company's business data value will be rapidly released, achieving a new engine of growth.

Core logic: 1. Zhangjiagang State-owned Holdings. The intelligent logistics platform deposits a large amount of data and has huge potential for monetization. The company actively explores the innovative path of “warehousing logistics+Internet”, and has successively launched the 1.0 and 2.0 versions of the smart logistics service platform, improving the convenience and safety of delivery. Furthermore, based on the unanimous demands of customers, the company cooperated with the Shanghai Clearing House to create the 3.0 version of smart logistics - the “Clearing Connect” platform of the Soviet Communications Network. Its integration integrates the three streams of transaction flow, capital flow, and goods logistics in the bulk spot market, accumulates a large amount of value data, and completes the transformation of credit from physical business entities to digital credit; 2. Digital yuan leader, leading the new digital yuan application circuit. As of October 30, Clearing Connect's digital RMB settlement business has achieved a cumulative delivery volume of nearly 200,000 tons, with a cumulative delivery value of nearly 800 million yuan. Eight partner banks, including ICBC and Huaxia Bank, and nearly 50 ecological partners participated in the business. The business guarantees the security of commodity fund settlement through digital technology, obtains complete records of commercial flow, logistics, and capital flow through traceability technology, and realizes digital supervision of capital, and is expected to be promoted on a large scale in the future.

Catalysts: The number of banks connected to Clearing Connect continues to increase, and the promotion of national data factor policies is accelerating

Risk warning: The risk that the industry will not develop as expected, and the risk of increased competition in emerging businesses.